Purchase amount
Source: Marketing An Introduction by Philip Kotler and Gary Armstrong, published by Prentice Hall 1987 Chapter 6 Consumer Markets and Consumer buying behavior
CONSUMER BEHAVIOUR
Here we will be discussing the consumers responses the stimulants
What they buy
The environmental and marketing influences that can affect what the consumer buys are
Social factors – references groups, family and social groups and status
From the above list the most important is references groups, these are people (friends) who the consumers has direct face-to-face contact with. If a friend tells you about a new product that they have purchased they are likely to influence your decision to buy the same one in return you buy it in fear of not fitting in are wanting to fit into a group you initially do not belong to.
Product – if the demand is strong enough the product will sell, however its features must apply with the needs desired. Appearance also plays an importance role especially in the
retail industry, since the late 1990’s there have been strong distinctive designs with the concept of ‘anything goes’ and the 1970’s revival.
The table below shows the UK sportswear products bought by consumers
† — do not sum due to rounding
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This table shows us that the majority of purchases were fleece product have a market sector value of £500m, sports footwear came close behind with £360m however the percentage of the sports footwear is bigger than the fleece products. We were also able to find out what brands he consumers bought in 1999 nad 2001
This table shoes the brand of sports clothing bought in 1999 and 2001
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Who buys?
The 15 – 24 year old generation is growing fast, it is this particular generation that have the strongest purchasing power as buyers. However this will not always be the case. This age group has a higher disposable income hat the older adults as they may be still living at home. The adults tend to buy the sports wear for fitness purposes. A survey conducted by the Gallup Organisation for Key note concluded that 65% of adults go on long walks to keep fit, 44% do exercises in the home and 22% swim on a regular basis. Compared to the 16 – 24 year olds 40% go to the Gym on a regular basis. The table below reflects this 15-19 and 20 -24 year olds bought their sportswear for casual purposes.
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Where they buy?
Location, location, location. When a business is deciding where to locate their premises they need to consider the cost of the premises. More and more sports retailers are steering out of town developments due to our key need of convenience. In order for us to asses where the consumers bought their sportswear we looked at the retailer’s turnover.
The table below shows the turnover ranking for retailers between 1997-2001.
The reason why JJB had the biggest percentage change was they had a wide range of sportswear, more sports brands and moves convenient.
How they buy?
This pie chart shows how they consumers buy their sportswear in 2001
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This pie chart shows us that the majority of people (23%) bought their sportswear from footwear shops, this is due to the customers being able to see the product is person and see what it looks like on them.
How much they buy?
Economic influence is very important when there is less disposable income to spend. Consumers spend less money on luxuries and concentrate on their needs. This will be discussed in much more detail later in the report.
Price is not very influential when it comes to buying sportswear. You find that those on a tight budget still find the money to buy top brand sportswear.
In order for us to asses the amount consumers buy we decided to analyse the level of consumer spending.
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The table below shows that the majority of consumers spent £31-£50 on sports clothing.
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